SOMFY - Annual Financial Report 2020

03 NON-FINANCIAL STATEMENT

I. ATTRACTING NEW TALENTS, DEVELOPING SKILLS & EMPLOYEE ENGAGEMENT

roll-out at Group level of a platform to provide an overview of – vacant positions (Smartrecruiters solution); introduction of individual performance reviews and – development reviews for all Group employees (training of Group employees in relation to this new approach in 2020 and roll-out scheduled for 2021); employee indicators via the biannual Somfyscope engagement – survey and self-assessment of quality of working life conducted annually during the performance review (with systematic interview with HR in the event of an employee reporting problems). 4. Results and KPIs The results of the 2020 Somfyscope engagement survey are very satisfactory. The intrinsic engagement rate was 7.6 , an increase of 0.5 points in relation to 2018. These healthy results were driven by two major themes: pride in belonging to the Group and confidence in its future. The survey is open to all employees. The response rate was 78% in 2020. The engagement rate represents the average score out of 10 for the 10 key questions asked in the survey.

1. Description of the risk

Attracting talent and developing the skills of its employees are central to Somfy’s challenges. The Group’s performance is dependent on its ability to have the right resources, in the right place, at the right time. In addition to the risk of not having the human resources required to achieve its ambitions, not focusing on the development of employees’ skills could run the risk of an exodus of talents. Supporting employees to improve their employability is a key factor in increasing their feeling of job security and, as a result, retaining them within the company. Moreover, these challenges of attracting talents and developing skills incorporate the business’s current and future needs in relation to its strategy. 2. Policies An agreement on Jobs and Skills Planning was concluded for a period of five years from 1 January 2020 for the scope of Somfy Activités SA. This agreement facilitates the improvement and coordination of the resources implemented in terms of training, career management, geographic and professional mobility, and skills development. It particularly provides for an initiative to anticipate changing jobs (mapping and policy), the process of annual reviews, the introduction of People Reviews, etc. Somfy decided to roll out these measures at Group level, thus beyond the framework set out by the agreement. In addition, a policy on internal mobility is under development and will be rolled out within the Group over the course of 2021. 3. Initiatives conducting People Reviews: anticipating organisational changes, – defining development plans, identifying pools of talent in order to offer them attractive career paths, constructing succession plans for key positions within the organisation, analysing organisational and job developments (78 People Reviews in each organisation and 15 cross-Departmental People Reviews); introduction of a careers watchdog: mapping of existing – professions and associated skills, forward planning regarding expected developments within these professions (16 professional networks, 94 occupational fields with framework of associated skills, 187 generic positions with associated descriptions - documents available to all Group employees); creation of skills development plans to support the excellence of – the functions and a specific training/awareness raising policy to support remote working within the Group and the introduction of the new HR cycle; introduction of mobility committees to facilitate the – identification of potential candidates and the proposed career paths (monthly sessions at Executive Committee meetings in France and internationally); Several types of measures have been introduced to ensure the Group attracts talents and develops skills:

The indicators related to training are as follows: Collection panel for social data % of employees who received training during the year % of employees who were promoted or relocated*

2019

2020

69.65% 49.90%

8.25% 7.85%

Somfy Activités SA

2019

2020

% of employees who received training during the year % of employees who were promoted or relocated*

76.97% 68.78%

17.06% 18.30%

* Number of promotions in the year divided by the total number of employees on the payroll at 31 December.

The amount of training in 2020 was impacted by the lockdown and the inability to complete certain face-to-face training as a result of the health conditions. E-learning modules have been developed (annual performance review, effectiveness in remote working, for example) and remote training was provided without however offsetting the overall decline.

II. DIVERSITY AND INCLUSION

1. Description of the risk

Diversity and inclusion are at the heart of Somfy’s people-focused project. Somfy not only considers diversity to be a value in itself, enabling it to discharge its social responsibility in an authentic way, but also to be a lever enabling the Group to enhance experiences and perspectives, to innovate and to change. Not being proactive on this issue would risk missing the opportunity to develop as a result of the difference.

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SOMFY – ANNUAL FINANCIAL REPORT 2020